2 weeks Ago By The Straits Times
DPM Heng Swee Keat (centre) touring the exhibition booths at SWITCH 2024 on Oct 28 . SINGAPORE – Singapore will invest another $440 million to attract more venture capital firms to invest in local deep tech start-ups. The top-up will go to the Start-up SG Equity scheme, run by Enterprise Singapore and the Singapore Economic Development Board (EDB).
This expands the total amount of Government funding under the scheme to over $1 billion. Under the scheme, which was established in 2017, the Government collaborates with private sector investors to back innovative and Singapore-based deep tech start-ups capable of scaling internationally. Deep tech refers to start-ups which provide high-tech innovation in engineering, or are based on significant scientific advances.
To support the development of more early to early-growth stage deep tech start-ups, the cap of total Government equity has also been increased from $8 million to $12 million for each start-up, Deputy Prime Minster (DPM) Heng Swee Keat said on Oct 28. He was speaking at the opening ceremony of the Singapore Week of Innovation and Technology (Switch) 2024. The event is organised by Enterprise Singapore and held at Marina Bay Sands from Oct 28-30.
DPM Heng said that deep tech ventures need “patient capital” with a longer timeline to mature, but Singapore is enhancing the capital market to better enable local and global start-ups to access capital for their growth and innovation. “Singapore, as a global financial centre with more than $5.4 trillion of assets under management and more than 1,650 family offices, is well-placed to do so,” he added.
DPM Heng also noted that the Monetary Authority of Singapore (MAS) has already formed a review group to strengthen the local equities market and provide an additional source of capital for start-ups. Additionally, two Government-backed investment arms – Seeds Capital and EDBI – will be merged to form SG Growth Capital in 2025. This will enhance Singapore’s expertise in deep tech financing, and allow the Republic to better support its deep tech start-ups, DPM Heng said.
According to Enterprise Singapore, nearly $3 billion has been invested in over 330 start-ups under the Startup SG Equity scheme. This includes more than $2.5 billion in private sector funds.
DPM Heng also announced the launch of StageONe, a one-stop platform to connect local and international tech start-ups and drive opportunities for collaboration between start-ups, corporations and innovation partners. The initiative is jointly led by Enterprise Singapore and EDB, with the Action Community for Entrepreneurship as the appointed operator. It will also be supported by JTC Corporation, with green lane arrangements to facilitate the setup of StageONe’s foreign start-ups as JTC’s Launchpad.
StageONe, set to launch in the first quarter of 2025, will feature a physical centre offering programmes and services to support start-ups in establishing their base in Singapore. It will focus on building business capabilities, fostering growth and providing access to international markets and opportunities. The initiative will also help global start-ups integrate into Singapore’s ecosystem, driving the exchange of ideas and talent with the local start-up community.
Switch is expected to host about 20,000 attendees, including entrepreneurs, those from government agencies and investors, from more than 100 countries. ST PHOTO: CHONG JUN LIANG “This physical centre will bring innovators and community builders to spark connections and help new players join the ecosystem,” DPM Heng said. Meanwhile, DPM Heng also announced the expansion of the Global Innovation Alliance (GIA) network to the Netherlands.
Launched in 2017 by Enterprise Singapore, the GIA strengthens Singapore’s connections to major innovation hubs around the world. With the new nodes in the Dutch cities of Amsterdam and Eindhoven, the GIA network will now run acceleration programmes in 23 cities. Enterprise Singapore has supported over 600 tech start-ups through the GIA since 2019.
Enterprise Singapore will partner with Dutch start-up accelerator Startupbootcamp to run the 12-week GIA acceleration programme in Amsterdam, offering Singapore-based tech start-ups a series of virtual masterclasses and coaching sessions to build market knowledge and refine entry strategies. This will be followed by an in-market immersion, including business meetings and pitches to Startupbootcamp’s corporate partners, such as Alliander and Shell. Dutch start-ups looking to expand into Singapore can collaborate with Startupbootcamp to learn more about Singapore’s innovation ecosystem and tap the infrastructure here to scale their solutions across South-east Asia.
“Start-ups in Singapore will benefit from the strong logistics infrastructure and connectivity that the Netherlands provides into Europe, and partnerships with Dutch corporates like Alliander, ASML, Philips and Shell,” said DPM Heng. Dr Mark Lim, founder and chief executive of space tech start-up Aliena, told The Straits Times that the $440 million funding top-up will be beneficial for deep tech start-ups. His firm recently closed a funding round under the Start-up SG Equity scheme, where it raised $7.
42 million from investors including Seeds Capital and venture capital firm Wavemaker Partners “The capital provided from Seeds Capital in our funding round has allowed us to transit from deep research and development that took place in their existing facility, to producing systems and components at scale for their international customers,” he said. “Our company is looking forward to establishing presence internationally, and we believe that the establishment of this new node (in the Netherlands) would allow for us to tap on a greater strategic pool of customers as we continue to scale and produce our systems globally.” DPM Heng also announced the launch of the inaugural AI Open Innovation Challenge, the inaugural Nordic Open Innovation Challenge, and the sixth edition of the Sustainability Open Innovation Challenge.
Through these challenges, large corporations will identify problem statements in areas such as AI, sustainability, as well as advanced manufacturing, and local start-ups and small and medium enterprises (SMEs) can apply to address these challenges and scale their solutions. Under the AI Open Innovation Challenge, five companies across the infrastructure, hospitality, security, marine and transport sectors – AECOM, Park Royal Collection, Safran, Seatrium and Toyota Tsusho – are participating. They have issued six challenge statements to local start-ups and SMEs to source for AI solutions to raise efficiency, effectiveness, and build safety into their operations.
The Sustainability Open Innovation Challenge features 14 companies, including GlobalFoundries, Seatrium and Sentosa Development Corporation. These companies have issued 16 challenge statements to drive innovation in areas like sustainable materials, green buildings, and agri-food, helping them meet their sustainability goals. More than $2.
5 million has been committed to the challenge to help selected start-ups and SMEs scale and develop their solutions . Similarly, the Nordic Open Innovation Challenge aims to foster partnerships between Singapore companies and multinational corporations to address challenges in sustainability and advanced manufacturing. Selected local firms can co-innovate and launch pilot projects with companies like ABB and Electrolux, working through their Singapore or Nordic headquarters and gaining access to new markets.
Switch is expected to host about 20,000 attendees, including entrepreneurs, those from government agencies and investors, from more than 100 countries. Around 400 exhibitors have set up booths, with a focus on AI, space tech, sustainability and other tech innovations. Join ST's Telegram channel and get the latest breaking news delivered to you.
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